Summary of "FULL SPEECH: Canada’s PM Carney Says US-Led World Order Is Breaking at World Economic Forum | AC1G"

Mark Carney’s Speech at the World Economic Forum

Canada’s Prime Minister Mark Carney addressed the unraveling of the US-led rules-based international order amid intensifying great power rivalry. He argued that the traditional global system, which relied heavily on American hegemony to provide public goods such as security, open trade, and dispute resolution, is breaking down. Major powers are increasingly weaponizing economic integration through tariffs, financial coercion, and exploiting supply chain vulnerabilities.

The Power of the Powerless

Carney referenced the concept of “the power of the powerless,” drawn from Czech dissident Václav Havel, to emphasize that the existing international order has persisted largely because countries complied with a system they privately recognized as flawed. However, this “living within a lie” is no longer sustainable.

He urged middle powers like Canada to:

Stop pretending the old order functions
Act honestly and pragmatically
Build a new global framework based on shared values such as:
- Human rights
- Sovereignty
- Sustainable development
- Solidarity

Strategic Autonomy and Global Fragmentation

While countries are rightly seeking greater strategic autonomy in critical areas like energy, food, minerals, finance, and defense, Carney warned that a fragmented world of isolated “fortresses” would be poorer and less secure.

He proposed that middle powers should:

Collaborate to share the costs of resilience
Create flexible coalitions (“variable geometry”) to address specific global challenges
Partner with countries sharing enough common interests and values

Canada’s Approach: Value-Based Realism

Carney described Canada’s approach as “value-based realism,” which combines:

Principled commitment to fundamental values
Pragmatic engagement recognizing the complexity and fluidity of current geopolitics

The Canadian government is strengthening domestic economic foundations through:

Tax cuts
Investment in energy, AI, critical minerals, and defense
Diversifying trade and security partnerships globally, including with:
- The EU
- China
- Qatar
- India
- ASEAN and others

Canada’s Global Roles and Commitments

Carney highlighted Canada’s active roles in:

Supporting Ukraine’s defense
Arctic sovereignty
NATO commitments
Plurilateral trade initiatives
Critical minerals alliances
AI governance with like-minded democracies

He warned that middle powers negotiating bilaterally with hegemonic powers risk subordination and must instead unite to create a third path that wields legitimacy, integrity, and collective rules.

Conclusion: A Call to Middle Powers

The speech concluded with a call for middle powers to:

Acknowledge the reality of great power rivalry
Apply consistent standards to all actors
Build genuine institutions
Reduce vulnerabilities
Leverage Canada’s strengths, including:
- Its resources
- Educated population
- Capital and fiscal capacity
- Pluralistic society

Carney urged these powers to lead in forging a new, more just and resilient global order.

Presenter: Prime Minister Mark Carney